Baxter International Inc. reported a net sales increase of 6% for the fiscal year ending December 31, 2025, totaling $11.24 billion, compared to $10.64 billion in 2024. The company's international sales rose by 7% to $5.12 billion, while U.S. sales increased by 5% to $6.12 billion. However, Baxter experienced a net loss attributable to stockholders of $957 million, or $1.87 per diluted share, which included significant special items that adversely impacted net income by $2.09 billion. This loss contrasts with a net loss of $638 million, or $1.27 per diluted share, in the previous year.
The company underwent significant strategic changes, including the sale of its Kidney Care business to Carlyle Group for $3.80 billion, completed on January 31, 2025. This transaction allowed Baxter to repay approximately $3.81 billion of legacy debt, contributing to a stronger financial position despite the reported losses. Additionally, Baxter sold its BioPharma Solutions business in September 2023 for $3.96 billion, further aiding in debt reduction. The company has also implemented a new operating model, streamlining its operations into three reportable segments: Medical Products & Therapies, Healthcare Systems & Technologies, and Pharmaceuticals.
Operationally, Baxter employed approximately 37,500 people globally as of December 31, 2025, with a focus on enhancing efficiency through automation and digitization. The company reported cash flows from continuing operations of $951 million, reflecting improved profitability and working capital management. However, challenges such as supply chain disruptions, particularly from Hurricane Helene, and ongoing inflationary pressures have impacted operational performance. The company anticipates continued efforts to optimize its cost structure and improve operational efficiencies in the coming years.
Looking ahead, Baxter aims to achieve a net leverage target of approximately 3.0x by the end of 2026, focusing on disciplined capital allocation and maintaining its investment-grade credit rating. The company has reduced its quarterly dividend to $0.01 per share as part of its deleveraging strategy, emphasizing the need to balance shareholder returns with strategic investments. Baxter's management remains committed to driving sustainable growth and innovation, particularly in high-growth markets, while navigating the complexities of the healthcare landscape.
About BAXTER INTERNATIONAL INC
Baxter International Inc. develops and manufactures a broad range of essential healthcare products, including sterile IV solutions, infusion systems, parenteral nutrition, surgical hemostats, smart bed systems, patient monitoring technologies, respiratory devices, and specialty pharmaceuticals. Serving hospitals, clinics, and home care globally, Baxter’s diversified portfolio and integrated supply chain support cost-effective, innovative healthcare solutions across developed and emerging markets. Its business model emphasizes product innovation, operational efficiency, and global distribution.
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